THE INFLUENCE OF ECONOMICS ON ANTITRUST LAW

Economists today play prominent roles in formulating antitrust policy and litigating antitrust cases. This paper explains why economics influences antitrust law and describes how economic theories enter and shape the antitrust system. Antitrust policy and doctrine change over time in response to developments in economic theory, and the decentralization of the antitrust adjudication system and the wide latitude accorded judges in interpreting antitrust statutes ensure that legal rules will reflect advances in the economic literature concerning the appropriate content of standards governing business conduct.     

THE LAW OF ONE PRICE REVISITED: NEW EVIDENCE ON THE BEHAVIOR OF INTERNATIONAL PRICES

This paper is an empirical investigation of the long-run behavior of international prices at the microeconomic level. It analyzes the time-series behavior of a unique set of carefully matched, disaggregated export prices for manufactured goods from the U.S., Gemany, and Japan over the period 1974–90. The results provide little evidence of a long-run linear relationship between global prices of similar export goods from different sources, casting doubts on the empirical relevance of the law of one price.     

THE LONG ARM OF THE LAW:

This article offers a test of labeling theory by exploring whether contact with school and justice system authorities has long-term, negative, and independent effects on an individual's labor market success. We use the National Longitudinal Survey of Youth (NLSY79), a large and nationally representative sample, to examine whether experiences ranging from school suspension to incarceration during ages 15–23 can predict occupational status, income, and employment during ages 29–37. Unlike previous studies, we control for an exhaustive list of variables: social background, human capital, prior deviant behavior, family status, and local context. Our findings generally support labelling theory. Severe forms of labeling like sentencing and incaraceration have the strongest negative effects, though among females suspension or expulsion from school also has consistently negative effects. We conclude with a discussion of how labeling might reduce employment chances, with a focus on gender differences.     

ON 'MAELSTROMS LARGE AND SMALL,METAPHORICAL AND ACTUAL': 'GRAY ZONES' IN THE WRITINGS OF PRIMO LEVI

This article examines the work of Primo Levi, with a focus on the tensions between ‘witness’ and ‘public intellectual’ in Levi's work. It analyses the notion of ‘gray zones’ in Levi's writings, where it functions as a way of indicating transformations in political action and public discourse in the wake of Auschwitz: most importantly, the Nazi genocide undermined the position of ‘spectator’ crucial to liberal discourse by implicating the spectator as a ‘bystander’. The study goes on to discuss the concepts of ‘work’, ‘science’ and ‘intellect’ in Levi's writing, showing how these categories reflect Levi's ultimately unsuccessful struggle to uncover a mode of political thought and public intervention adequate to the changes in political space of which the ‘gray zone’ is symptomatic, i.e. a condition of universal complicity and powerlessness. It concludes that implicit (and undeveloped) in Levi's thought is a set of ‘aesthetico-political’ presuppositions concerned with the articulation of founding, legitimacy and judgement. These presuppositions challenge the reliance of emancipatory discourses upon subjectivity and the logic of self-determination, indicating the need for a politics based on ‘pedagogical accountability’. Resisting the postmodern logic of ‘testimony’, which emerges in the gap between universal claims and their performance and hence dismantles the ‘outside’ as a space of judgement, i.e. the determination of the legitimacy of actions, the politics of pedagogical accountability grounds such an outside in the conjoining of power, responsibility for the world and boundary thinking. This space ‘outside’ ideology and the circulation of subjectivities emerges via resistance to the specifically ‘anti-political’ violence pervasive in late capitalism, and through the clarification of the distinction between this mode of violence and that (‘pre-political’) violence aimed at ‘subjects’.     

SOME EVIDENCE ON THE ALCHIAN AND ALLEN THEOREM: THE THIRD LAW OF DEMAND?

This paper examines empirically the Alchian and Allen proposition that shipping charges induce consumers to opt for higher quality goods. We show in a household productions framework why this holds whether goods or buyers travel. Using a large sample of individual consumption data for football games, we find that buyers who travel the farthest, purchase the best tickets. In the end, we believe that the Alchian and Allen theorem is so broad and pervasive that it qualifies as the third law of demand.     

THE IMPORTANCE OF LEGAL FORM OF ORGANIZATION ON SMALL CORPORATION EXTERNAL FINANCING

This article quantitatively evaluates the impact of legal form of organization (LFO) choices, C versus S corporation, on small business external financing. A treatment effect model is formulated and estimated to examine the relationship between corporate types and chances of obtaining external financing. The estimation takes into account self‐selection bias associated with LFO choices. This article finds that LFO choices mainly affect small corporations' access to external equity capital, but have no significant impact on loan financing. Specifically, when a small corporation selects the C corporate legal form, the probability of obtaining new external equity is eight times higher compared to when it selects the S corporate legal form. Furthermore, the results suggest that better access to external equity investments, loosening business capital constraints, leads to better growth prospects for small C corporations. These empirical results have important macro‐economic implications on corporate financial and fiscal policies. (JEL G32, G38)     

THE "PSYCHOSOMATIC FAMILY" RECONSIDERED: DIABETES IN CONTEXT–A REPLY

Minuchin, Rosman and Baker's (1978) Psychosomatic Families: Anorexia Nervosa in Context, is a work that does demonstrate that physiological disturbance of some, very specifically defined, diabetic patients serves a function in their families. Statistical analyses of the original data are reported which strongly support the original conclusions; Coyne and Anderson's (1988) presentation of the methodology and findings of the original study is shown to substantially misrepresent information actually presented in the book. Review of the literature they cite was informative about some aspects of poorly controlled diabetes for a variety of populations but not relevant for psychosomatic patients; however, some of it supported our findings. Responsibility for "constraining" and/or "providing momentum" for the field is rejected and precise and rigorous thinking encouraged in developing both studies and critiques .